Pro-XRP lawyer and cryptocurrency enthusiast Bill Morgan has raised doubts about the feasibility of a Ripple Initial Public Offering (IPO) potentially launching. Morgan contends that Ripple’s current legal challenges create an unfavorable environment for an IPO.
Crypto Lawyer Doubts Possibility Of Ripple IPO In 2024
Earlier in November 2023, Wall Street expert, Linda Jones predicted that Ripple might launch its IPO in 2024. Referencing Jones’ forecast, an X (formerly Twitter) crypto enthusiast, posed the question of whether Ripple’s anticipated IPO would push the price of XRP to $10 in 2024.
Responding to the post, Morgan asked, “Who is the ‘expert’? Why would it go public while all this is happening?”
The crypto lawyer’s inquiries were referring to the ongoing legal battle between Ripple and the United States Securities and Exchange Commission (SEC). Since 2020, both parties have been in a legal dispute initiated when the SEC filed a lawsuit against Ripple, alleging violations of securities laws. The lawsuit accused Ripple of selling $1.3 billion in tokens without registering it as a security.
Subsequently, in 2023, Ripple secured a partial victory against the SEC when Judge Analisa Torres ruled that programmatic sales of XRP were not classified as a security. Despite the regulatory clarity obtained from the verdict, Ripple’s legal battle with the SEC persists.
In his post, Morgan suggested that a Ripple IPO would not be possible as long as the crypto payments company remains entangled in a lawsuit with the SEC. The crypto lawyer also shared a screenshot of the Remedies phase in the ongoing Ripple and SEC case, which is set to conclude by April 29, 2024.
Many crypto experts have predicted that a Ripple IPO would help boost the price of XRP since the cryptocurrency has been unable to experience a substantial rally. At the moment, XRP’s price is trading at $0.57.
Additionally, its position as the fifth-largest cryptocurrency by market capitalization was recently usurped by Solana in Hong Kong’s Virtual Asset Consortium’s (HKVAC) crypto index.
XRP price falls to $0.57 | Source: XRPUSD on Tradingview.com
Uncertain Fate For Ripple IPO
In 2023, rumors of Ripple launching an IPO in 2024 spread like wildfire. However, a new report challenges these speculations. The CEO of Ripple, Brad Garlinghouse, recently revealed plans to buy back $258 million worth of shares in the company from early investors.
Garlinghouse clarified that the decision to buy back the exorbitant amount of shares does not imply that an IPO would be launched soon. Conversely, many XRP enthusiasts anticipate a Ripple IPO following the crypto payment company’s settlement with the US SEC.
“We all know Ripple will IPO after the case vs. SEC, and with an actual stock retail, fund managers, hedge funds will all be able to have exposure to both Ripple as a company and XRP in one,” an X user stated.
Featured image from DeFi Planet, chart from Tradingview.com